Brice Publications,Inc.produces and sells business books.The results of the company's operations for the year ended December 31,20x1,are given below.
A.Prepare a traditional income statement for the company.
B.Prepare a contribution income statement for the company.
C.The contribution statement would be used because the fixed and variable costs must be separated in order to measure the effect of a volume change on total costs.Unfortunately,a traditional income statement does not provide the necessary information.
C.Which income statement (traditional or contribution)would an operating manager most likely use to study changes in operating income that are caused by changes in sales? Why?

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The Answer of Brice Publications,Inc.produces and sells business books.The results of the company's operations for the year ended December 31,20x1,are given below.
A.Prepare a traditional income statement for the company.
B.Prepare a contribution income statement for the company.
C.The contribution statement would be used because the fixed and variable costs must be separated in order to measure the effect of a volume change on total costs.Unfortunately,a traditional income statement does not provide the necessary information.
C.Which income statement (traditional or contribution)would an operating manager most likely use to study changes in operating income that are caused by changes in sales? Why?